Lithium ingots with a thin layer of black nitride tarnish. Credit: Dnn87.

Lithium Americas has signed definitive agreements with Chinese firm Ganfeng Lithium with respect to their joint venture (JV) company Minera Exar, the holding company for the Caucharí-Olaroz lithium brine project in Jujuy, Argentina.

Ganfeng will pay $16m to increase its stake in the Cauchari-Olaroz project from 50% to 51% while Lithium Americas will retain a 49% stake and receive an additional $40m in cash.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

In August last year, Ganfeng Lithium closed a previously announced transaction to increase its interest in the Caucharí-Olaroz lithium brine project from 37.5% to 50%.

Furthermore, Lithium Americas and Ganfeng have agreed to restructure Exar Capital, a jointly controlled firm that provides financing to the project, to reflect the proportionate ownership of the Minera Exar JV.

Lithium Americas president and CEO Jon Evans said: “The transaction with Ganfeng Lithium further strengthens our balance sheet while ensuring Caucharí-Olaroz construction continues to advance as planned.”

The deal is expected to close in August this year.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Lithium Americas intends to build a $400m Thacker Pass lithium project in Nevada, US, next year, reported Reuters.

The Caucharí-Olaroz project remains on schedule to start production at 40,000 tonnes per annum (tpa) of battery-quality lithium carbonate early next year.

Ganfeng Lithium vice-chairman and vice-president Xiaoshen Wang said: “The transaction provides increased financial flexibility and benefits to Ganfeng Lithium as we continue to invest in one of the largest and lowest-cost sources of lithium carbonate globally alongside our partner, Lithium Americas.”

Last month, Lithium Americas launched an environmental review process for the Thacker Pass lithium claystone project, which could result in final permits to build by 2021.